I think an update just came in a few minutes ago.
This is mine where I couldn’t repro the issue:
Version: 2.6.22
VSCode Version: 1.105.1
Commit: c6285feaba0ad62603f7c22e72f0a170dc8415a0
Date: 2026-03-27T15:59:31.561Z
Build Type: Stable
Release Track: Early Access
Electron: 39.8.1
Chromium: 142.0.7444.265
Node.js: 22.22.1
V8: 14.2.231.22-electron.0
OS: Darwin arm64 25.3.
Does it also persist on a clean install of cursor (no extensions, vim editing, etc)?
Edit: looks like the team has confirmed this is a bug.